News & Analysis
Eightcap FX technical insights – 04/12/17
Friday produced a few surprises, market sentiment shifted for the USDCAD.The GBP took a breather to the JPY and USD. Gold found a temporary low point.
EURJPY – sellers have put a pause on the rally, two levels of resistance presenting 134.40 and short-term 134.14. Today’s candle is an inside bar if it fails we may see a deeper test lower. If buyers can force a move above 134.14, we would think there will be a test up to 134.50.
GBPJPY – has also set up an inside bar today, a few levels to watch short-term support seen at 151.39 – 151.00 with resistance seen at 152..40 – 152.85. Price looks to be trading on balance today. Traders will be looking for a break out to set the tone. Due to today’s bar, we’re slightly leaning to bulls side for now.
USDCAD – took a beat down on Friday, positive CAD news and negative USD news combined to fuel both sides taking price 211 pips lower. Sellers reconfirmed 1.2910 as resistance. So where to from here? The supported range is just below at 1.2665. Influences are currently negative for the USD while tax reform continues to be delayed. While support continues to hold, buyers will look to consolidate at this level. Any further negative escalations could see a direct test of 1.2665 but it will take something significant to break it as this level has held since the 25th of October.
GOLD – weaker a USD lifted price on Friday, short-term support seen from 1272.50. price needs time to show buyers are in control as above bearish patterns are present. The medium-term trend was broken last week. Price set a failed high on Friday closing below the mid-Bollinger band. Today price has stalled below 1275.92 level. Any positive movement in the USD could set sellers off again. Buyers have a bit to do before this picture starts to look bullish.
Good trading from Eightcap
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